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Right Brain Systems LLC.
Srini Koushik
President and CEO
Right Brain Systems LLC.
Twitter Handle - @skoushik
                                                     innovation – agility - execution
                             © Right Brain Systems
For time and the world do not stand still.
Change is the law of life. And those who
 look only to the past or the present are
       certain to miss the future.
              John F. Kennedy


               © Right Brain Systems
Where are they today?
                                                         •   Circuit City Stores
              1.Level 5 Leadership                       •   Fannie Mae
              2.Right people on right seats on the bus   •   Wells Fargo
                                                         •   Phillip Morris
              3.Confront the Brutal Facts                •   Pitney Bowes
              4.Hedgehog Concept                         •   Walgreens
                                                         •   Gillette Company
              5.A Culture of Discipline                  •   Kroger
              6.Use technology to accelerate growth      •   Nucor
                                                         •   Kimberly Clark
              7.The Flywheel Effect                      •   Abbott Laboratories




     The past is not a good predictor of success in the future
2/5/2013                    © Right Brain Systems                            3
The Black Swan Events

           1. Rare but high impact events occur
           2. It is impossible to compute the probability
                                                              So how do we
              of these consequential rare events
                                                            handle these Black
           3. Psychological biases that make people           Swan events?
              ignorant and indifferent to the impact of
              these rare events




 We don’t plan for them, we make ourselves resilient to them
2/5/2013                    © Right Brain Systems                            4
Business @ The speed of Thought
           Consumerization      Universal Access     Pervasive Computing




           Cloud Computing       Social Business          Big Data




       The pace of change is accelerating and converging
2/5/2013                     © Right Brain Systems                         5
Innovation – Key to success




     Innovation helps companies take advantage of change
2/5/2013                © Right Brain Systems              6
It’s not the strongest of the species that
survive, nor the most intelligent, but the
  ones that are the most responsive to
                  change
              Charles Darwin


              © Right Brain Systems
Deconstructing
Innovation




2/5/2013     © Right Brain Systems   8
Learning and innovation go hand in
hand. The arrogance of success is to
think that what you did yesterday will
      be sufficient for tomorrow

           William Pollard

             © Right Brain Systems
What is Innovation?




    Innovation is the set of capabilities that allows the continuous realization of a
    desired future by transforming what is possible into what is valuable for many
2/5/2013                         © Right Brain Systems                                  10
Innovation: Experience and Value
                                             Experience and Value



                      Functionality        Reliability        Convenience              Price




           Continuous Innovation                                        Disruptive Innovation
           •   Improves one or more of these factors                    •   Changes the value proposition
           •   Driven by mainstream customer needs                      •   Creates new markets
           •   Has limits                                               •   Starts in the lower end of the price spectrum
           •   Practiced by market leaders                              •   Not viable and in many cases deliberately
                                                                            ignored by market leaders



  The discipline of market leaders frequently gets in the way
2/5/2013                                        © Right Brain Systems                                                  11
Innovation: In different industries
   Communications                                 Travel &
                           Manufacturing
      & Media                                  Transportation
                                                                      • Is innovation limited to certain
                                                                        industries?
   Consumer &
      Retail
                           Public Sector
                                                 Financial
                                                 Services             • Are certain industries immune to
                                                                        pressures of innovation?

             Health &                Property & Casualty
           Life Sciences                 Insurance



                                                                       • Do industry regulations impede
                                                                         innovation?


      Regulated industries are ripe for Disruptive Innovation
2/5/2013                                                   © Right Brain Systems                           12
Is Innovation all about products?



                                         Business
  Product   Process    Service                      Value   Market
                                          Model




 The most difficult innovations to copy are those that combine
                 many things in a unique way
2/5/2013                © Right Brain Systems                        13
Innovators: Born or Made?




      Innovation is a skill that can be learned and perfected
                             with practice
2/5/2013                  © Right Brain Systems                 14
Innovation: Stroke of Inspiration?




           Innovation is 1% Inspiration and 99% perspiration!!!
2/5/2013                    © Right Brain Systems                 15
Believing in the impossible starts with
believing that the impossible is possible

                      Srini



              © Right Brain Systems
A different way of
Thinking




 2/5/2013      © Right Brain Systems   17
The world as we have created it is a
 process of our thinking. It cannot be
changed without changing our thinking

           Albert Einstein


             © Right Brain Systems
How the Human Brain Works?
  LEFT BRAIN FUNCTIONS RIGHT BRAIN FUNCTIONS                                      Left – Right Conflict
                                                                      Look at the chart and say the Color not the word
               uses logic    uses feeling
          detail oriented    "big picture" oriented                         YELLOW BLUE ORANGE
                facts rule   imagination rules
     words and language      symbols and images                               BLACK RED GREEN
        present and past     present and future                              PURPLE YELLOW RED
       math and science      philosophy & religion
        can comprehend       can "get it" (i.e. meaning)                    ORANGE GREEN BLACK
                 knowing     believes                                         BLUE RED PURPLE
           acknowledges      appreciates
order/pattern perception     spatial perception                              GREEN BLUE ORANGE
     knows object name       knows object function
            reality based    fantasy based
         forms strategies    presents possibilities                      Your left brain         Your right brain
                 practical   impetuous                                 insists on reading      tries to say the color
                      safe   risk taking
                                                                           the word.

     An idea is a network of neurons making new connections
2/5/2013                                            © Right Brain Systems                                            19
Think Left and Think Right
                      Critical Thinking             Creative Thinking
                   Evaluation
                                                                    Curiosity
                                             Synthesis
                 Assessment
                                                                      Imagination
                                            Abstraction
                Reasoning through Logic
                                                                        Playfulness
                                            Elaboration
               Convergent Thinking
                                                                  Reasoning through
                                          Parallel Thinking   metaphors and analogy
                 Analysis
                                          Design Thinking       Divergent Thinking
                   Description

                      Interpretation                          Lateral Thinking




    The world as we have created it is a process of our thinking.
   It cannot be changed without changing our thinking - Einstein
2/5/2013                         © Right Brain Systems                                20
Can anyone be creative?




      Creativity makes a leap and then looks to see where it is –
                            Mason Cooley
2/5/2013                  © Right Brain Systems                21
Design Thinking
 Building to think
 People and culture centric
 Rapid prototyping
 Meaningful experiences
 Participatory not just consumption




           You see things; and ask “Why?”; But I dream things that
               never were; and I say, “Why Not?” – G.B. Shaw
2/5/2013                              © Right Brain Systems          22
Lean Thinking
           A non-zero sum (win-win) principle based management
      system focused on creating value for our end customers and
         eliminating waste, unevenness and unreasonableness
                Respect for People                              Continuous Improvement


      Create Value for Customers                             Drive continuous Innovation

     Improve adaptability to change                              Create bandwidth


           If you see a snake, don’t appoint a committee on
                    snakes – just kill it – Ross Perot
2/5/2013                             © Right Brain Systems                                 23
Knowledge Brokering
                                   Capture
                                    Ideas




                                 Knowledge          Keep
                Prototype                           them
                                  Brokering         alive




                                   Find new
                                      uses



The only source of knowledge is experience – Albert Einstein
2/5/2013                    © Right Brain Systems           24
Lateral Thinking



                                                           Brain Storming and
           Six Thinking Hats                  MindMap
                                                              Brain Writing


   Everyone has the right to doubt everything as often as he
pleases and the duty to do it at least once. No way of looking at
things is too sacred to be reconsidered. No way of doing things
           is beyond improvement.” – Edward De Bono
2/5/2013                           © Right Brain Systems                        25
Picking your targets
                                                                 High



 What we     Research &    Imagine &
               Learn        Explore
                                                                               Improve        Sustain




                                                         Importance to
don’t know




                                                          organization
             Execute &     Collect &
What we       Improve     Collaborate
                                                                               Outsource      Exploit
 Know

                                                                   Low
             We Know       We don’t                                      Low                            High
                                                                                    Organizational
                            know                                                      Capability

       Innovation is saying “No” to a 1000 things – Steve Jobs
 2/5/2013                        © Right Brain Systems                                                    26
Think left and think right and think low
and think high. Oh, the thinks you can
        think up if only you try

               Dr. Seuss


              © Right Brain Systems
The RBS Innovation
System




 2/5/2013     © Right Brain Systems   28
What is a system?
           sys·tem/ˈsistəm/
           Noun
           1.A set of connected things or parts forming a complex whole, in particular.
           2.A set of things working together as parts of a mechanism or an interconnecting network.




• A system has structure, it contains parts (or components) that are directly or
  indirectly related to each other;
• A system has behavior, it contains processes that transform inputs into
  outputs (material, energy or data);
• A system has interconnectivity: the parts and processes are connected by
  structural and/or behavioral relationships.

2/5/2013                                       © Right Brain Systems                                   29
Seven building blocks for Innovation
    1.     Creativity and Playfulness
    2.     Open and Collaborative Culture
    3.     Diversity of Thought and Experience
    4.     Connecting ideas across domains
    5.     Experimenting and prototyping mindset
    6.     Adaptability to change
    7.     Risk Tolerance and Acceptance of Failure

    These are key to build a sustainable culture of innovation
2/5/2013                       © Right Brain Systems             30
What gets in the way

      •    Fear of   the Unknown
      •    Fear of   being judged
      •    Fear of   the first step
      •    Fear of   letting go


           I learned that courage is not the absence of fear; but
                   the triumph over it – Nelson Mandela
2/5/2013                      © Right Brain Systems                 31
Unlocking Creativity in Individuals
                              • Passionate Involvement   • Embraces Change
      Aptitude – Desire to    • Playful                  • Enjoys Challenges
            perform           • Creative Thinking        • Seeks Solutions
                              • Optimistic               • Suspends Judgment
                              • Persistent
                              • Associating
     Attitude – The Ability   • Observing
            to Learn          • Questioning
                              • Experimenting
                              • Networking
 They don’t play it safe, they do something that scares them at the edge of their
                    capabilities where they may fail – Brad Bird

2/5/2013                         © Right Brain Systems                          32
Organization
                                  • Informal
                                  • Playful
                   Social         • Flexible
                                  • Celebrating Learning
                                  • Small teams
           Structural             • Context driven teams
                                  • Outcome based hiring
                                  • Incentives and Rewards
                                  • Innovative Workspaces
                Operational
                                  • Time to Think
                                  • Active Learning
                                  • Collaborative operations

2/5/2013                      © Right Brain Systems            34
Innovative Workspaces




2/5/2013        © Right Brain Systems   35
The next generation of leaders
                  CURRENT GENERATION                      NEXT GENERATION
                  What they have?                         What they can do?
 What drives
                  Looking good                            Being good
 them?
                  Stability and Certainty                 Change and Ambiguity

                  Reinforce hierarchy                     Reinforce informal networks
 How they
                  Command and control                     Enable and Contribute
 manage?
                  Operational                             Experimentation

 What they        Depth of Expertise                      Breadth of Experience
 Value?           Celebrate Success                       Celebrate Learning
                  Amity & Conformance                     Viewpoints & Creative Tension

    Leadership is lifting a person’s vision to high sights, the raising of a
       person’s performance to a higher standard, the building of a
        personality beyond its normal limitations. —Peter Drucker
2/5/2013                          © Right Brain Systems                                   36
Operationalizing Innovation
                                     Individual            Organization         Leadership
Creativity and Playfulness           Creative Thinking     Informal Structure   Accessible Leaders

Open and Collaborative               Suspends judgment     Innovative           Contribute and Enable
                                                           Workspace
Diversity of Thought                 Questioning           Collaborative        Viewpoints and
                                                           Operations           Creative Tension
Connecting ideas across domains      Networking            Active Learning      Informal Network

Experimenting and Prototyping        Persistent            Small Teams          Persistent

Adaptability to Change               Embraces Change       Context Sensitive    Embraces Change
                                                           teams
Risk Taking                          Optimistic            Incentives and       Celebrate Learning
                                                           Rewards

                       Do or Do Not; There is no try - Yoda
2/5/2013                           © Right Brain Systems                                             37
He who innovates will have for his
  enemies those who are well under the
existing order and only lukewarm support
from those who might be better off under
                 the new

              Machiavelli
              © Right Brain Systems
Common Patterns of Innovation




2/5/2013            © Right Brain Systems   39
Conclusion
• Innovation is key to the long-term growth and success
  of any organization
• All individuals and organizations can learn how to
  Innovate
• Innovation requires an unflinching commitment from
  leaders
• Technology and IT can play a critical role in Innovation

2/5/2013              © Right Brain Systems                  40

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Operationalizing Innovation

  • 1. Right Brain Systems LLC. Srini Koushik President and CEO Right Brain Systems LLC. Twitter Handle - @skoushik innovation – agility - execution © Right Brain Systems
  • 2. For time and the world do not stand still. Change is the law of life. And those who look only to the past or the present are certain to miss the future. John F. Kennedy © Right Brain Systems
  • 3. Where are they today? • Circuit City Stores 1.Level 5 Leadership • Fannie Mae 2.Right people on right seats on the bus • Wells Fargo • Phillip Morris 3.Confront the Brutal Facts • Pitney Bowes 4.Hedgehog Concept • Walgreens • Gillette Company 5.A Culture of Discipline • Kroger 6.Use technology to accelerate growth • Nucor • Kimberly Clark 7.The Flywheel Effect • Abbott Laboratories The past is not a good predictor of success in the future 2/5/2013 © Right Brain Systems 3
  • 4. The Black Swan Events 1. Rare but high impact events occur 2. It is impossible to compute the probability So how do we of these consequential rare events handle these Black 3. Psychological biases that make people Swan events? ignorant and indifferent to the impact of these rare events We don’t plan for them, we make ourselves resilient to them 2/5/2013 © Right Brain Systems 4
  • 5. Business @ The speed of Thought Consumerization Universal Access Pervasive Computing Cloud Computing Social Business Big Data The pace of change is accelerating and converging 2/5/2013 © Right Brain Systems 5
  • 6. Innovation – Key to success Innovation helps companies take advantage of change 2/5/2013 © Right Brain Systems 6
  • 7. It’s not the strongest of the species that survive, nor the most intelligent, but the ones that are the most responsive to change Charles Darwin © Right Brain Systems
  • 8. Deconstructing Innovation 2/5/2013 © Right Brain Systems 8
  • 9. Learning and innovation go hand in hand. The arrogance of success is to think that what you did yesterday will be sufficient for tomorrow William Pollard © Right Brain Systems
  • 10. What is Innovation? Innovation is the set of capabilities that allows the continuous realization of a desired future by transforming what is possible into what is valuable for many 2/5/2013 © Right Brain Systems 10
  • 11. Innovation: Experience and Value Experience and Value Functionality Reliability Convenience Price Continuous Innovation Disruptive Innovation • Improves one or more of these factors • Changes the value proposition • Driven by mainstream customer needs • Creates new markets • Has limits • Starts in the lower end of the price spectrum • Practiced by market leaders • Not viable and in many cases deliberately ignored by market leaders The discipline of market leaders frequently gets in the way 2/5/2013 © Right Brain Systems 11
  • 12. Innovation: In different industries Communications Travel & Manufacturing & Media Transportation • Is innovation limited to certain industries? Consumer & Retail Public Sector Financial Services • Are certain industries immune to pressures of innovation? Health & Property & Casualty Life Sciences Insurance • Do industry regulations impede innovation? Regulated industries are ripe for Disruptive Innovation 2/5/2013 © Right Brain Systems 12
  • 13. Is Innovation all about products? Business Product Process Service Value Market Model The most difficult innovations to copy are those that combine many things in a unique way 2/5/2013 © Right Brain Systems 13
  • 14. Innovators: Born or Made? Innovation is a skill that can be learned and perfected with practice 2/5/2013 © Right Brain Systems 14
  • 15. Innovation: Stroke of Inspiration? Innovation is 1% Inspiration and 99% perspiration!!! 2/5/2013 © Right Brain Systems 15
  • 16. Believing in the impossible starts with believing that the impossible is possible Srini © Right Brain Systems
  • 17. A different way of Thinking 2/5/2013 © Right Brain Systems 17
  • 18. The world as we have created it is a process of our thinking. It cannot be changed without changing our thinking Albert Einstein © Right Brain Systems
  • 19. How the Human Brain Works? LEFT BRAIN FUNCTIONS RIGHT BRAIN FUNCTIONS Left – Right Conflict Look at the chart and say the Color not the word uses logic uses feeling detail oriented "big picture" oriented YELLOW BLUE ORANGE facts rule imagination rules words and language symbols and images BLACK RED GREEN present and past present and future PURPLE YELLOW RED math and science philosophy & religion can comprehend can "get it" (i.e. meaning) ORANGE GREEN BLACK knowing believes BLUE RED PURPLE acknowledges appreciates order/pattern perception spatial perception GREEN BLUE ORANGE knows object name knows object function reality based fantasy based forms strategies presents possibilities Your left brain Your right brain practical impetuous insists on reading tries to say the color safe risk taking the word. An idea is a network of neurons making new connections 2/5/2013 © Right Brain Systems 19
  • 20. Think Left and Think Right Critical Thinking Creative Thinking Evaluation Curiosity Synthesis Assessment Imagination Abstraction Reasoning through Logic Playfulness Elaboration Convergent Thinking Reasoning through Parallel Thinking metaphors and analogy Analysis Design Thinking Divergent Thinking Description Interpretation Lateral Thinking The world as we have created it is a process of our thinking. It cannot be changed without changing our thinking - Einstein 2/5/2013 © Right Brain Systems 20
  • 21. Can anyone be creative? Creativity makes a leap and then looks to see where it is – Mason Cooley 2/5/2013 © Right Brain Systems 21
  • 22. Design Thinking Building to think People and culture centric Rapid prototyping Meaningful experiences Participatory not just consumption You see things; and ask “Why?”; But I dream things that never were; and I say, “Why Not?” – G.B. Shaw 2/5/2013 © Right Brain Systems 22
  • 23. Lean Thinking A non-zero sum (win-win) principle based management system focused on creating value for our end customers and eliminating waste, unevenness and unreasonableness Respect for People Continuous Improvement Create Value for Customers Drive continuous Innovation Improve adaptability to change Create bandwidth If you see a snake, don’t appoint a committee on snakes – just kill it – Ross Perot 2/5/2013 © Right Brain Systems 23
  • 24. Knowledge Brokering Capture Ideas Knowledge Keep Prototype them Brokering alive Find new uses The only source of knowledge is experience – Albert Einstein 2/5/2013 © Right Brain Systems 24
  • 25. Lateral Thinking Brain Storming and Six Thinking Hats MindMap Brain Writing Everyone has the right to doubt everything as often as he pleases and the duty to do it at least once. No way of looking at things is too sacred to be reconsidered. No way of doing things is beyond improvement.” – Edward De Bono 2/5/2013 © Right Brain Systems 25
  • 26. Picking your targets High What we Research & Imagine & Learn Explore Improve Sustain Importance to don’t know organization Execute & Collect & What we Improve Collaborate Outsource Exploit Know Low We Know We don’t Low High Organizational know Capability Innovation is saying “No” to a 1000 things – Steve Jobs 2/5/2013 © Right Brain Systems 26
  • 27. Think left and think right and think low and think high. Oh, the thinks you can think up if only you try Dr. Seuss © Right Brain Systems
  • 28. The RBS Innovation System 2/5/2013 © Right Brain Systems 28
  • 29. What is a system? sys·tem/ˈsistəm/ Noun 1.A set of connected things or parts forming a complex whole, in particular. 2.A set of things working together as parts of a mechanism or an interconnecting network. • A system has structure, it contains parts (or components) that are directly or indirectly related to each other; • A system has behavior, it contains processes that transform inputs into outputs (material, energy or data); • A system has interconnectivity: the parts and processes are connected by structural and/or behavioral relationships. 2/5/2013 © Right Brain Systems 29
  • 30. Seven building blocks for Innovation 1. Creativity and Playfulness 2. Open and Collaborative Culture 3. Diversity of Thought and Experience 4. Connecting ideas across domains 5. Experimenting and prototyping mindset 6. Adaptability to change 7. Risk Tolerance and Acceptance of Failure These are key to build a sustainable culture of innovation 2/5/2013 © Right Brain Systems 30
  • 31. What gets in the way • Fear of the Unknown • Fear of being judged • Fear of the first step • Fear of letting go I learned that courage is not the absence of fear; but the triumph over it – Nelson Mandela 2/5/2013 © Right Brain Systems 31
  • 32. Unlocking Creativity in Individuals • Passionate Involvement • Embraces Change Aptitude – Desire to • Playful • Enjoys Challenges perform • Creative Thinking • Seeks Solutions • Optimistic • Suspends Judgment • Persistent • Associating Attitude – The Ability • Observing to Learn • Questioning • Experimenting • Networking They don’t play it safe, they do something that scares them at the edge of their capabilities where they may fail – Brad Bird 2/5/2013 © Right Brain Systems 32
  • 33. Organization • Informal • Playful Social • Flexible • Celebrating Learning • Small teams Structural • Context driven teams • Outcome based hiring • Incentives and Rewards • Innovative Workspaces Operational • Time to Think • Active Learning • Collaborative operations 2/5/2013 © Right Brain Systems 34
  • 34. Innovative Workspaces 2/5/2013 © Right Brain Systems 35
  • 35. The next generation of leaders CURRENT GENERATION NEXT GENERATION What they have? What they can do? What drives Looking good Being good them? Stability and Certainty Change and Ambiguity Reinforce hierarchy Reinforce informal networks How they Command and control Enable and Contribute manage? Operational Experimentation What they Depth of Expertise Breadth of Experience Value? Celebrate Success Celebrate Learning Amity & Conformance Viewpoints & Creative Tension Leadership is lifting a person’s vision to high sights, the raising of a person’s performance to a higher standard, the building of a personality beyond its normal limitations. —Peter Drucker 2/5/2013 © Right Brain Systems 36
  • 36. Operationalizing Innovation Individual Organization Leadership Creativity and Playfulness Creative Thinking Informal Structure Accessible Leaders Open and Collaborative Suspends judgment Innovative Contribute and Enable Workspace Diversity of Thought Questioning Collaborative Viewpoints and Operations Creative Tension Connecting ideas across domains Networking Active Learning Informal Network Experimenting and Prototyping Persistent Small Teams Persistent Adaptability to Change Embraces Change Context Sensitive Embraces Change teams Risk Taking Optimistic Incentives and Celebrate Learning Rewards Do or Do Not; There is no try - Yoda 2/5/2013 © Right Brain Systems 37
  • 37. He who innovates will have for his enemies those who are well under the existing order and only lukewarm support from those who might be better off under the new Machiavelli © Right Brain Systems
  • 38. Common Patterns of Innovation 2/5/2013 © Right Brain Systems 39
  • 39. Conclusion • Innovation is key to the long-term growth and success of any organization • All individuals and organizations can learn how to Innovate • Innovation requires an unflinching commitment from leaders • Technology and IT can play a critical role in Innovation 2/5/2013 © Right Brain Systems 40